BILL ANALYSIS �
SB 124
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Date of Hearing: August 14, 2013
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Mike Gatto, Chair
SB 124 (Corbett) - As Amended: August 5, 2013
Policy Committee: Utilities and
Commerce Vote: 10-3
Urgency: No State Mandated Local Program:
No Reimbursable:
SUMMARY
This bill requires state agencies and the California State
University (CSU) contracting for the installation of a clean
energy device, technology, or system to provide a 5% preference
for bidders who certify all parts, devices and technologies of
the system were manufactured in California. Specifically this
bill:
1)Requires the preference to be 5% of the bid price of the
lowest responsible bidder meeting specifications, or 5% of the
total score of the highest scored bidder when factors in
addition to price are considered.
2)Requires DGS to publish and regularly update information on
its website on the location of sites that receive bid
preferences, the name of the manufacturer and the type of
clean energy device, technology, or system utilized.
3)Requires DGS to publish a report on the employment growth
associated with the clean energy bid preference for women,
minority and disabled veterans.
4)Restates the total of all bid preferences authorized is
limited to 15%.
5)Sunsets the provisions of the bill on January 1, 2020.
FISCAL EFFECT
1)To the extent competitively bid contracts are awarded to other
than the lowest bidder, the state will incur additional costs
SB 124
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on contracts. These costs are unknown, but given the
considerable volume of state contracting, could total at least
several hundred thousand dollars annually (General Fund and
various special funds).
2)DGS will also incur significant one-time GF administrative
costs to develop regulations to implement the new contracting
requirement in the range of $100,000 to $200,000. In
addition, adding a new factor for awarding contracts is likely
to result in additional protests from unsuccessful bidders,
with resulting costs and contract delays.
3)DGS will incur significant ongoing administrative costs to
publish on its website bid preference and contractor
information and the associated employment growth.
COMMENTS
1)Purpose . According to the author, this bill supports the
continued development of energy efficiency and alternative
energy in California and protects investment in green
technology.
2)Support . Supporters of SB 124 state that the bid preferences
will reward manufacturers and contractors located here in
California, support in-state employment for skilled workers
and attract capital investment to the state.
3)Opponents express concern the bid preference will drive up
energy costs. They also express concern that protectionist
statutes will promote trade wars with or retaliatory actions
by other states or nations.
4)Previous Legislation. SB 175 (Corbett) failed in the Assembly
Business, Professions, and Consumer Protection Committee. This
bill would have provided a 5% bid preference in state
contracts for the purchase and installation of solar panels
manufactured or assembled in the state.
Analysis Prepared by : Jennifer Galehouse / APPR. / (916)
319-2081
SB 124
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